Feb. foreclosure filings at year-over-year low
February witnessed the lowest year-over-year increase in foreclosure filings since January 2006, RealtyTrac Inc., of Irvine, Calif., reported today.
February witnessed the lowest year-over-year increase in foreclosure filings since January 2006, RealtyTrac Inc., of Irvine, Calif., reported today.
Filings also fell 2 percent from January, RealtyTrac said.
Two major snowstorms that struck the Northeast in the first two weeks of February might have contributed to the monthly drop as well as the small year-over-year increase.
"Severe winter weather appears to have temporarily slowed the processing of foreclosure records in some Northeastern and Mid-Atlantic states," said James J. Saccacio, RealtyTrac chief executive officer.
"This leveling of the foreclosure trend is not necessarily evidence that fewer homeowners are in distress and at risk for foreclosure," he said, "but rather that foreclosure-prevention programs, legislation, and other processing delays are, in effect, capping monthly foreclosure activity - albeit at a historically high level that will likely continue for an extended period."
Pennsylvania and New Jersey again ranked below the national average. Pennsylvania was 35th of 50 states, with one filing for every 1,338 houses. New Jersey, with one filing for 938 houses, was 31st on the list.
The national average was one in 438 homes, with Nevada first with one in 102, and Vermont 50th with one in every 39,077 houses.
Six states - California, Florida, Michigan, Illinois, Arizona, and Texas - accounted for 60 percent of all foreclosure filings in the month.
Experts are predicting that foreclosures filings will increase during the rest of the year as rising unemployment makes it increasingly difficult for homeowners to make their mortgage payments.
Lenders and the government are looking into ways of dealing with unemployed homeowners not covered by existing mortgage-modification programs.
A program proposed by the Mortgage Bankers Association would let loan servicers reduce the borrower's mortgage payment to an affordable amount for up to nine months while the homeowner looked for a job. (Recent statistics show that the average length of unemployment is six to seven months, the bankers' group said.)
Once re-employed, the borrower would be evaluated for a modification under the Obama administration's Home Affordable Modification Program.
A $1.5 billion government initiative announced last month would cover unemployed borrowers in five states hit hardest by foreclosures - California, Michigan, Arizona, Nevada, and Florida.
